Trump claims Korea Alaska LNG investment as Taiwan, Japan deals push forward

WASHINGTON — U.S. President Donald Trump on Wednesday unilaterally announced a Korean investment in the Alaska liquefied natural gas (LNG) project, though Seoul has yet to decide whether to join, alongside commitments from Japan and Taiwan that he presented as wins ahead of the midterm elections.

"I was just in Alaska launching the largest energy infrastructure project in Alaska history — The Alaska LNG Project. This 50 billion dollar infrastructure investment from the Republic of Korea is part of their trade and investment deal with me," Trump wrote on his Truth Social. 

He had also presented Korea’s LNG investment as a done deal at a campaign rally the day before. The Korean government, however, has only said that the deal is "under review," adding that it will take part only if the investment is proved to be commercially sound. 

The Alaska LNG project has been under discussion for decades and is projected to cost between $44.5 billion and $54.5 billion, with a planned annual output of 20 million metric tons, according to Reuters. Industry skeptics doubt it can turn a profit, though, as gas would have to travel a long pipeline from the remote North Slope, and analysts estimate the build-out would cost more than twice as much as a comparable plant on the U.S. Gulf Coast.

Trump in the same post also said Taiwan had committed to buying Alaska LNG and investing in the project, writing, "I am also announcing today that my Commerce Secretary, Howard Lutnick, has secured an offtake commitment from Taiwan of between 70 to 80 billion dollars for Alaska LNG — That is 30% of the pipeline for the next 20 years." He continued, "On top of that, Taiwan has also agreed to invest 4.4 billion dollars in equity into the project, because this is now a U.S. federal government project, with all necessary permits secured, and all necessary authorizations delivered, and ready to go."

Taiwan’s Ministry of Economic Affairs confirmed the plans the same day, though in more tentative terms. It said Taiwan intends to buy 6 million metric tons of LNG a year from the project once production begins and may invest up to $4.4 billion under its current plan, with supplies arriving in 2032 at the earliest if the project stays on schedule.

In a separate post the same day, Trump also announced Japan’s investment in the United States.

"GlobalFoundries and my Department of Commerce led by Secretary Howard Lutnick announced a massive 21 billion investment to build 2 giant new semiconductor manufacturing facilities in Malta, New York,” Trump wrote. “Under my direction, Japan will provide the capital for the 21 billion dollar investment,” he wrote. “This deal is a result of my historic trade deals to revitalize the American industrial base, create hundreds of thousands of great American jobs and strengthen our national and economic security.”

GlobalFoundries, a U.S. contract chipmaker, previously handed a 3 percent stake to the U.S. government in exchange for federal subsidies. If the new investment goes ahead, the government’s stake is expected to rise to 7 percent. Trump said the U.S. government’s total investment is $1.63 billion, and the value of the stake the government currently holds, 7 percent, exceeds $2 billion, referring to the investment made with Japanese funds.

GlobalFoundries subsequently released a statement confirming the investment. Japan, under a trade deal reached last year, agreed to invest $550 billion in projects across strategic U.S. industries, including energy, semiconductor manufacturing and shipbuilding, in exchange for lower U.S. tariffs.

The Trump administration initially pressed Korea to invest in the semiconductor industry as well. But the trade agreement between Seoul and Washington stipulates that companies set up with Korea’s investment funds are owned by the United States. Citing this provision, the Korean government reportedly balked at semiconductor investment, arguing that it could not hand partial ownership of domestic chipmakers with advanced technology to the U.S. government.

Earlier on Wednesday, Trump said large-scale oil, gas and mineral exploration would soon begin in Greenland.

The trilateral security agreement the United States signed with Denmark and Greenland last month, however, makes no explicit mention of oil or gas. Beyond providing for two large U.S. military bases in Greenland and a significant increase in troops stationed there, it states only that the parties will cooperate in minerals, economic development and business initiatives.

Deputy Minister of Business, Mineral Resources and Energy for Greenland Home Rule, Jorgen Hammeken-Holm, pushed back on Trump’s claim.

“There are activities by U.S. companies,” he told CNN, but "we are very far away from ‘massive’ exploration." He added, “There are many smaller explorations underway, but these could take years to become operational."

Greenland’s resource deposits lie beneath an ice sheet up to 1.6 kilometers (1 mile) thick in remote Arctic areas with almost no infrastructure, according to CNN.

BY KANG TAE-HWA [[email protected]]